Page 51 - Aidlink AR 2021

DIRECTORS’ REPORT
For the financial year ended 31 December 2021 Continued
Every euro collected by Aidlink comes from the Irish public either directly, through membership
of FTCs, or through taxpayers contribution. The Board of Aidlink and Aidlink’s partners remain grateful for the support of the Irish people.
Expenditure on other charitable activities increased from €474,902 (2020) to €589,331. This reflects an increase in programme expenditure; Kenya up 16% from €434,261 (2020) to €505,240 due to funds carried forward and Uganda up 48% from €40,641 (2020) to €84,091 in 2021. Immersion costs fell from €80,926 in 2020 to €18,197 in 2021, this reflects the lack of immersion programme in 2021 due to the global pandemic crisis.
Included within expenditure on charitable activities and on raising funds were support costs of €181,973 (2020: €152,054). Support costs
DONATION AND LEGACIES
Immersion Programme
€500,000 €400,000 €300,000 €200,000
€100,000
include all Irish based costs on staff, premises, and operating expenses. This increase partly reflects the absence of the government Temporary Wage Subsidy Scheme which was received in 2020. Despite this increase Aidlink is not back to 2019 level of support costs (€199,242). Aidlink moved premises in the fourth quarter of 2021 and expects
to see a reduction in premises costs from 2022 onwards. These costs
are met f rom Aidlink’s unrestricted income, including Irish Aid’s administration funds.
The contract period for the Irish Aid Civil Society Fund grant is July to June while Aidlink reports on a calendar year. While Irish Aid’s total funding of €380,000 was received during the 2021 calendar year, a balance of €176,203 is included in restricted funds at year end. Under accounting standards, this balance was included in the Restricted
Income for 2021. This balance has been on-granted in full to the Girl Child Network and will be included in 2022 reports.
2021 saw a total decrease in net income from €21,906 (2020) to €14,405. This €20,745 decrease in unrestricted funds can be attributed to the lack of immersion programme.
Restricted funds at the year end were €213,446. These are funds that must be allocated per the donors’ wishes.
Reserves
Aidlink defines its reserves as its total unrestricted funds. These unrestricted reserves represent those resources that the company can use for any of its charitable purposes. The Board aims to maintain its total unrestricted reserves level at a minimum of six months head office operating costs.
This threshold has been set following an assessment of the following factors:
• The need to provide short term
protection against downward fluctuations in annual incoming resources;
• The need to provide long term strategic financial support to Aidlink’s partners;
• The need to finance unplanned projects where the need arises; and
• The need to provide a financial cushion in the event of extreme circumstances affecting the company’s ability to operate.
Other Donations
€0
2021 2020 2019 2018 2017
Aidlink Annual Report 2021 | 49